EasyJet wins battle of the budget airlines with stronger passenger growth in July than rival Ryanair

Low-fare airline easyJet got one over on Ryanair today as it saw its passengers numbers rise more strongly than its Irish rival last month.

EasyJet said it carried 6.43million passengers in July, a 7.7 per cent rise on the total for the same month in 2013, with passenger numbers on a rolling 12-month basis up 5.9 per cent to 63.83million.

Meanwhile Ryanair saw a 4.0 per cent rise in July 2014, albeit with 9.15million people flying with the Irish carrier. Ryanair carried 83.0million passengers in the rolling 12 months ending July 2014 - also a 4.0 per cent rise on the figure for the 12 months ending July 2013.

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Shares rally: easyJet recovered aftera near 8 per cent fall yesterday on reports that Russia was considering a ban on European airlines flying over Siberia in response to the imposition of Western sanctions

Blue-chip easyJet saw its shares add 1p at 1,256p, rallying after near 8 per cent falls yesterday on reports that Russia was considering a ban on European airlines flying over Siberia in response to the imposition of Western sanctions.

The growth in traffic figures comes a week after Ryanair raised its forecast for full year profits as its first quarter earnings more than doubled.

The Irish airline upped its current year profit forecast to €620-650million (£491-£514million) from €580-620million euros (£459-£491million), as more passengers, fuller flights and shaved costs drove profits after tax in the quarter to June 30 up 152 per cent to 197million euros (£156million)

But in contrast, a trading update a fortnight ago from easyJet had prompted the City to scale back its annual profits forecasts as the airline counted the cost of unrest and political tensions affecting Israel, Egypt and Russia.

Chief executive Carolyn McCall said the airline expected pre-tax profits for the year to the end of September to be in the range of £545million to £570million.

That represented an increase of at least 14 per cent on the year before but City experts had pencilled in a figure of £572million for easyJet.

The easyJet caution had come in the wake of a series of profit warnings from major European carriers Lufthansa and Air France-KLM in July which had knocked a sector already impacted by worries over higher fuel costs as oil prices spiked on geopolitical tensions in Ukraine and Iraq.

But – together with Ryanair - blue chip International Airlines Group bucked that trend last week, with British Airways’ owner posting a 55 per cent rise in second quarter operating profits.

IAG’s profits of £301million marked a turnaround in fortunes for the company, after it posted a loss of £119million in the first quarter of the year.

Meanwhile, London City Airport is celebrating the busiest month in its 27 year history. Last month, a total of 341,866 passengers travelled through the airport - a 4 per cent increase on July 2013, which was the previous record month.